Tata Power goes all in on renewables
The company plans to cut back on thermal power and put renewable energy at the front and centre of its plans. Will the bet pay off?
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Editor's note: Praveer Sinha, chief executive and managing director of Tata Power, has given one of India’s biggest power companies a makeover. Ever since he took the reins in March 2018, the power generation arm of the Tata group has reorganized its thermal power business, is in the process of divesting dead investments and has been steadily reducing its debt. Tata Power’s revenue has grown over 60% in the past four years to about Rs 44,000 crore in 2021-22. Its net debt-to-EBITDA ratio stood at 3.5 in the September quarter of the current fiscal year as against over 7 in 2017-18 (the ratio measures a company’s ability to pay off its liabilities). Investors seem to have bought into Sinha’s vision. Tata Power’s stock has jumped 225% since 2018. The company has outperformed most of its peers, such as Torrent Power and NTPC, and even the benchmark S&P BSE Utilities index, except for Adani Green Energy, which has seen its stock jump over 6,000% since it listed in 2018. In April this year, before Tata Power announced New York-based BlackRock’s Rs 4,000 crore …
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